Astec Industries, Inc.
Astec Industries, Inc. Fundamental Analysis
Astec Industries, Inc. (ASTE) shows weak financial fundamentals with a PE ratio of 28.07, profit margin of 3.50%, and ROE of 7.27%. The company generates $1.4B in annual revenue with weak year-over-year growth of -2.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ASTE's fundamental strength across five key dimensions:
Efficiency Score
WeakASTE struggles to generate sufficient returns from assets.
Valuation Score
WeakASTE trades at a premium to fair value.
Growth Score
WeakASTE faces weak or negative growth trends.
Financial Health Score
ExcellentASTE maintains a strong and stable balance sheet.
Profitability Score
WeakASTE struggles to sustain strong margins.
Key Financial Metrics
Is ASTE Expensive or Cheap?
P/E Ratio
ASTE trades at 28.07 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ASTE's PEG of 6.27 indicates potential overvaluation.
Price to Book
The market values Astec Industries, Inc. at 2.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.13 times EBITDA. This is generally considered low.
How Well Does ASTE Make Money?
Net Profit Margin
For every $100 in sales, Astec Industries, Inc. keeps $3.50 as profit after all expenses.
Operating Margin
Core operations generate 5.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.27 in profit for every $100 of shareholder equity.
ROA
Astec Industries, Inc. generates $3.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Astec Industries, Inc. generates limited operating cash flow of $61.86M, signaling weaker underlying cash strength.
Free Cash Flow
Astec Industries, Inc. produces free cash flow of $45.37M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.98 in free cash annually.
FCF Yield
ASTE converts 3.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How ASTE Stacks Against Its Sector Peers
| Metric | ASTE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.07 | 26.76 | Neutral |
| ROE | 7.27% | 1300.00% | Weak |
| Net Margin | 3.50% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.53 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.57 | 10.68 | Strong Liquidity |
| ROA | 3.55% | -1545134.00% (disorted) | Weak |
ASTE outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Astec Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.19%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-80.23%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-79.80%
Industry Style: Cyclical, Value, Infrastructure
Declining